If there are low barriers to entry, a monopolist
A) might undertake investment to lower marginal cost in the face of a potential rival.
B) will undertake investment to lower marginal cost in order to increase profits.
C) will not undertake investment to lower marginal cost under any circumstances because profits are lower.
D) Both A and B.
Question 2
A firm that is vertically integrated
A) participates in more than one successive stage of production.
B) has higher profits than firms that are not vertically integrated.
C) produces all of its own inputs.
D) relies on other firms to market its products.
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